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Holy Toledo! Claims Waived Under Article 8

In a February 2, 2016 decision, the Tenth District Court of Appeals in Franklin County affirmed the Court of Claims and upheld the decision to deny an electrical contractor’s claims against the University of Toledo because they were not timely asserted.

This ruling sends another important message to contractors that you must provide both timely notice and substantiation of your claims or they will be waived.

Article 8 of the State of Ohio General Conditions sets forth the requirements for submitting and substantiating a claim:

  1. claims accrue on the date of the occurrence of the event giving rise to the claim;
  2. within 10 days after the claim accrues, the contractor must provide written notice to the contracting authority and architect/engineer;
  3. within 30 days after initiating a claim the contractor must provide 4 copies of supporting documentation to substantiate the claim;
  4. within 30 days after initiating the claim the contractor must certify the claim by providing a notarized statement verifying the accuracy, completeness, fairness and reasonableness of the claim and claim amount; and
  5. failure to timely comply with requirements 2, 3 or 4 above will constitute an “irrevocable waiver” of any related claim.

Despite the contractor’s arguments of substantial compliance, owner-caused delays, contractor inability to calculate the precise amount of its damages and futility of administrative remedies, the Court of Claims and Court of Appeals strictly interpreted the contractual notice provisions and held that the electrical contractor had irrevocably waived its claim as a matter of law. Relief in the form of unjust enrichment was also denied. Holy Toledo! That hurts Batman! POW!

Lessons learned:

  1. understand and follow dispute resolution requirement in your construction contract;
  2. obtain assistance from legal counsel, risk management or a claims consultant to prepare and deliver a timely, properly documented and certified claim;
  3. failure to strictly comply with the contract requirements can be costly and painful; and
  4. be proactive, not reactive.

Should you wish to consult with the author of this article, please feel free to contact Attorney Robert A. Hager at (330) 253-4925.

FTC Supports Retiring the Ohio APRN Collaborative Agreement

As an industry leading advocate and general counsel for the Ohio Association of Advanced Practice Nurses, Brennan, Manna & Diamond attorney, Jeana M. Singleton, has been integral in efforts to bring an outdated regulatory structure into the 21st century by modernizing the law and expanding access to care.

BMD Congratulates 2020 Ohio Super Lawyers and Ohio Rising Stars

BRENNAN, MANNA & DIAMOND is proud to announce RICHARD W. BURKE (Estate Planning and Probate),HAMILTON DeSAUSSURE, JR. (Business Litigation), ROBERT A. HAGER (Construction Litigation), DAVID J. HRINA (Business/Corporate), MICHAEL A. STEEL (Bankruptcy, Business) and RICHARD L. WILLIGER (Workers’ Compensation) have been selected as 2020 Ohio Super Lawyers by Law and Politics magazine, Northern Ohio Live magazine, and Cincinnati Magazine in their respective area of practice. BMD’s 2020 Rising Stars include: JUSTIN M. ALABURDA (Business Litigation), KYLE A. JOHNSON (Business Litigation), ALEX J. McCALLION (Business Litigation), CHRISTOPHER J. MEAGER (State/Local/Muni Law), BRANDON T. PAULEY (Business/Corporate) and DANIEL J. RUDARY (Business Litigation)

Ohio's "One Bite" Program Changes

The Ohio Medical Board has for some years had a “One Bite” program where a physician with a substance problem could undergo treatment. The treatment was private and not disclosed to the Medical Board. If the problem was later disclosed, the physician obtaining treatment would avoid sanctions from the Medical Board.

Jury Awards Care Center $225,000

Congratulations to Scott Sandrock on the jury verdict in favor of our client. The verdict stems from the lawsuit filed on behalf of our client against Spectrum Cable for fraud in connection with business services. The jury awarded Plaintiff $22,000 for compensatory damages, plus $225,000 in punitive damages and recovery of attorney fees in favor of our client.

BMD Beefs Up its Attorney Force with 7 New Hires

Founded in 2000 by three entrepreneurial and business-minded attorneys to provide a legal platform for companies and entrepreneurs in a wide variety of industries, Brennan Manna Diamond (BMD) has been in growth mode ever since. The firm, which began in Akron with just seven attorneys, now has three Ohio and two Florida offices as well as an international location in Shanghai, China through a joint venture with the law firm Jade & Fountain. BMD recently added seven more lawyers, six who are located in the Akron office.